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​Ministry of Industry and Trade will deploy seven solutions to remove difficulties for enterprises.

On the afternoon of November 17th, in Hanoi, Minister of Industry and Trade - Vu Huy Hoang had a meeting with the functional units discussing the deployment of seven solutions to remove difficulties for enterprises throughout the country, which focus on the solution to push inventory turnover, helping enterprises maintain production.


Accordingly, the Ministry is considering bartering for businesses with low inventory turnover ratio whose products are inputs of others to be able to negotiate on advanced products and collecting finished goods from manufacturers, selling and getting direct profits on the basis of joint venture. Besides, the Ministry continues to accelerate disbursement of budget-funded projects which have been approved in order to consume the products of such industries as building materials, cement and steeling, sanitary, electrical equipment; also launches stimulus programs to close out some large groups of inventory.
 
As for automotive industry, the Ministry is considering the proposal to reduce the registration fee by 10% in major cities to stimulate consumption. As for agricultural machinery manufacturing, the Ministry will propose to the Government to support 100% of interest for farmers to purchase agricultural machinery and manufacturing equipments, operate agro-processing and small transport, purchase by deferred payment; reduce VAT on agricultural machinery products to reduce costs and stimulate consumption.
 
To remove difficulties for enterprises, especially clearing inventory, creating production outputs, the Ministry of Industry and Trade will be focusing on deploying other important measures such as boosting exports together with administrative procedures reform to create favorable conditions for export; opening markets, limiting imports of consumption goods to stimulate domestic production, especially for goods produced domestically.
 
In addition, the important solution which will be promoted is domestic market development, consumption stimulation and production impulsion; the programs within the framework of the campaign "The Vietnamese prioritize to use Vietnamese goods" will be implemented in order to stimulate consumption and promote goods consumption. In particular, the Ministry of Industry and Trade will support enterprises in developing distribution channels of Vietnamese products to countries bordering Vietnam, organize trade delegation aiming to increase the competitiveness of Vietnamese goods, contributing to helping enterprise build the goods distribution corridor and channel of Vietnam from border gates and nearby economic zones to the domestic market of neighboring countries oriented toward sustainable development. Ministry of Industry and Trade also continues to adjust, supplement, expand the category of machinery, equipment, supplies, raw materials produced domestically to make the basis for the provincials People's Committee as well as enterprises to provide direction for the implementation of import restrictions and prioritize to use domestic goods by bidding for investment projects funded with the state capital, helping enterprises on product consumption and overstocking reduction. In addition, the Ministry will propose the Government apply favorable policy for units to use goods produced domestically.
 
Supplementing specific measures to remove difficulties for enterprises, the representative from the Department of Heavy Industry proposed: As for domestically produced goods such as mechanical items, besides recommending that the Ministry of Finance reduce tax on exports to 0% to help enterprises clear their inventory; consider taxes affecting directly the product cost structure, the Ministry needs to early study how to build administrative barriers to limit goods import. Representative from the Domestic Market Department confirmed: The solution to clear the inventory must be synchronized and flexible, such as cost reduction, market transformation, consumption stimulus....
 
Currently stimulus measures implemented under Resolution 13 of the Government is just the stimulating enterprises and general purchase investment; not consumption. Therefore, the Ministry of Finance should reduce VAT on consumer products that have high level of stock turnover to reduce prices and stimulate consumption. In addition, the experimental deployment of of consuming agricultural products oriented toward linking product consumption in regions  has showed that: Potential product consumption and distribution between provinces, cities and regions are very large, so this concept should be maintained and replicated.
 
Proposing solutions for launching market for goods and products, the representative from the Department of Export indicated: Vietnam's major markets for export such as the EU, the United States and Japan are declining; therefore negligible funding for trade promotion support should be prioritized for the three markets with the specific key items. Besides, as for the agricultural products for export, especially rice, the temporary storage for the winter-spring crop play a special role in encouraging foreign enterprises to finish rice trade agreements from Vietnam, limiting the price pressure by foreign traders as well as stabilizing domestic prices. In addition, Vietnamese enterprises themselves must take full advantage of the incentives under the Vietnamese trade agreements with other countries to promote the export of goods, because for only the first six months of 2012, the value of goods by FTA accounted for over 15% of exports overall.
 
Concluded the conference, the Minister of Industry and Trade - Vu Huy Hoang said: The immediate solution is to continue on the implementation of Resolution 11/2011, Resolution 03/2012 of the Government on the basis of implementing immediately specific agenda. Accordingly, beside proposed solution, the Ministry of Finance needs to allocate additional funds for trade promotion to help unfreeze the domestic market, expand the export market, and make product consumption much better. With trade promotion budget of this year which is less than half of the cost level compared to that in the previous period, trade promotion activities will not be effective as expected.
                                                                             
Source: Vietnam News Agency
 
 

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